State health plan expands

COLUMBIA — More South Carolinians are eligible to be covered by the State Health Plan, under a new law that extends the health and dental insurance to additional non-state agency employees and their families.

The State Health Plan currently covers 436,443 employees of state agencies, higher education, public school districts and local subdivisions. The total includes the employees’ spouses and children.

But a bill, S. 586, which was vetoed by Republican Gov. Nikki Haley before lawmakers in the Republican-controlled House and Senate overrode her decision, extends the plan to joint electric and power agencies and sanitation special purpose districts. The law had already covered special purpose districts created by the Legislature that provide gas, water, fire, sewer, recreation, or hospital service, along with others.

A spokeswoman for the Budget and Control Board said Thursday that the number of new enrollments to stem from the new law was unknown.

But Haley had argued that the change would risk saddling state and local governments with additional pension and trust fund liabilities.

“I believe the continuous expansion of the State Health Plan to non-state, quasi-public-private entities will lead to unintended fiscal consequences,” wrote Haley in her veto message.

“Since the 1980s the General Assembly has passed legislation to open the State Health Plan to dozens of optional special groups, many of which have very little nexus to state government, including public-private entities, nonprofits and associations that receive no state funds.”

The S.C. Office of State Budget within the Budget and Control Board issued a fiscal impact statement that said the change would not cost anything extra.

“Premiums for local groups are based on the claims experience of that local group, so the experience-adjusted premiums would negate extra costs to the Health Insurance trust fund as a result of the local group’s participation,” reads the impact statement.

The new law also includes a section that gives people financial incentives to participate in health and wellness programs, including anti-obesity efforts under the Employee Insurance Program.